Petrobras likely to control 100% of Abreu e Lima refinery project

Brazilian state-run energy major Petrobras (NYSE: PBR) is likely to assume full control of the Abreu e Lima refinery project as Venezuela's state oil company PDVSA has not yet managed to pay for its part of the construction costs, a source close to the matter told BNamericas. Originally, PDVSA was to be responsible for 40% of total investments in the Abreu e Lima refinery, which is being built in Brazil's Pernambuco state. Petrobras would hold the remaining 60% balance. But one year after signing a partnership agreement with Petrobras, PDVSA has had two financing requests rejected by Brazilian national development bank BNDES, for failing to present guarantees. The plant is expected to require total investments of 26bn reais (US$16.4bn), according to Petrobras' reviewed estimate. The project is part of Petrobras's US$224bn investment program for 2010-14. Abreu e Lima will have an output capacity of 230,000b/d. Abreu e Lima is expected to come online in 2012.